Saturday , September 19 2020
Home / unitedstates / US industrial output falls more in 17 months in October

US industrial output falls more in 17 months in October



[ad_1]

Getty Images

A Ford Motor Company worker works on a new truck at a factory in Dearborn, Michigan.

The numbers: US industrial output fell 0.8% in October, the largest decline since May 2018, the Federal Reserve said on Friday. It was the third decline in production in the last four months. The drop was steeper than Wall Street's expectations of a 0.5% drop.

The report was impacted by United Auto Workers strike at General Motors

GM, + 0.16%

, which reduced car production by 7.1%.

Weakness was not limited to car manufacturing. Excluding automobiles, industrial production fell by 0.5%.

Industrial production fell 0.6% in October. Auto parts manufacturers in October fell 0.1%.

Industrial capacity in use dropped to 76.7 in October. This is the lowest level in 25 months.

What happened: No sector showed a gain in production.

Mining production, which boosted growth, fell 0.7% in October. This is the third decline in the last four months. Utility output fell 2.6% following a sharp increase in the previous month.

Year-over-year, US industrial production fell by 1.1%.

Overview: The manufacturing sector is being hit hard by several headwinds, including weak global demand, uncertain international trade policy and problems at Boeing Co. Some economists had detected a failure in the manufacturing sector, but this report hides this impression. .

Fed President Jerome Powell told lawmakers this week that his economists are watching closely to see if weakness in the manufacturing sector spreads on the consumer side. But October retail sales data released on Friday were generally positive.

Market reaction: Actions

DJIA, + 0.34%

they were scheduled to open higher on Friday, as investors digested retail sales data.

[ad_2]
Source link